1. Technical Field
The present invention relates in general to the field of Computer Integrated Manufacturing (CIM) systems and in particular to improvements in payment procedures within Computer Integrated Manufacturing (CIM) systems. Still more particularly, the present invention relates to methods and systems for automating payment in a Computer Integrated Manufacturing (CIM) system wherein a significant savings over manual payment processing systems may be obtained.
2. Description of the Related Art
Computer Integrated Manufacturing (CIM) systems utilize computers to bridge and connect various computerized systems into a coherent, integrated whole, whereby the manufacturing process may be rendered more efficient.
The problem of production management within a Computer Integrated Manufacturing (CIM) system has been documented within many papers and books. For example, Joseph Orlicky wrote Material Requirements Planning, published by McGraw-Hill, which has become the industry standard reference for almost all job shop planning requirements. This concept of planning and releasing is well accepted and, even today, many vendors are selling software based upon this concept. A Purchasing System coupled to a Material Requirements Planning System may be utilized to automatically generate a purchase order for required materials.
Requisition grouping and order creation within a Computer Integrated Manufacturing (CIM) system may also be performed utilizing the Communications Oriented Production Inventory Control System (COPICS) distributed by International Business Machines Corporation. The COPICS system performs the requisition grouping process and order creation prior to transmitting an order to a supplier. The supplier then receives an order for an item via an electronic data interchange (EDI) along with a series of delivery schedules and quantities. At some date prior to the actual scheduled delivery date, the supplier sends an EDI advanced ship notice to the ordering enterprise. When the actual delivery is made, it is typically accompanied by a packing slip which contains information which is duplicated by that which was sent within the advanced ship notice. Quantities within an order are then checked for accuracy and the order delivery is considered complete.
Traditionally, the receipt of goods is thereafter manually entered into a system, based upon the packing slip information which is provided by the supplier. This information is added to the purchasing system for review by the requester, buyer, and accounts payable personnel. An invoice is then sent by the supplier to the purchasing enterprise for payment. In many cases the payment location is not the same as the ordering location, which adds to the complexity of ensuring accuracy in a delivery and payment system. Accounting must also verify the quantity and quality of goods received and make payment. When the goods received do not match, the goods which are invoiced an invoice referral is generally sent to the buyer for corrective action. This process is often performed prior to payment which can conceivably reduce the opportunity of the purchaser to obtain discounts. For example, if the commercial payment terms are 2%/10 net 30, a discount of 2% would be lost if the referral resolution takes longer than ten days. Alternatively, if payment is made upon receipt to the supplier errors in shipment must be handled after payment has been made.
It should therefore be apparent that a need exists for an automated method and system for payment within a Computer Integrated Manufacturing (CIM) system which will reduce the chances of making an inaccurate or premature payment while allowing the aggregation of invoices to make a minimum number of financial transaction per supplier and improving the timeliness of payments to take advantage of discounts, maximizing the use of funds by an enterprise.